Microsoft fined $733M by European Union for breaking browser promise

AMSTERDAM (AP) -- The European Union Commission fines Microsoft EUR561 million ($733 million) for breaking the terms of an earlier agreement to offer users a choice of internet browser.

Microsoft thought it had put its regulatory woes behind it with the 2009 settlement in which it paid EUR860 million and promised to give Windows users the option of choosing another browser rather than having Internet Explorer automatically installed.

But Microsoft failed to stick to the deal for some 15 million installations of Windows 7 in Europe from May 2011 until July 2012. The company acknowledged the failure and said it was a mistake.

The commission's top regulator, Joaquin Almunia, said negotiated settlements are vital for enforcement, and this was the first time a company had failed to keep its word.